GBP Forex Market Finds Unexpected Strength Against Dollar
This week, GBP/USD hit two-week highs against the USD after weakness in oil prices. Experts say that this is a sign of strength for those who invested on dips and have been waiting out the market volatility.
The “gbp/usd trading tips” is a currency that has been experiencing some unexpected strength against the dollar. The GBP/USD pair has been trading at 1.2400 for most of the day, which is a major change from the historical average of 0.8200.
The GBP/USD exchange rate has reached a new high for the week.
Most are on the defensive as the dollar strengthens.
Stocks are expected to open higher once again.
During the European session, the Pound currency market had a solid start to the day. This comes ahead of a major Bank of England meeting later this week, when policymakers are likely to hike the UK interest rate. The USD’s resilience is all the more remarkable considering that it has been recovering ground versus most other major currencies in the market, including the Euro. The Dollar is trading marginally higher as the Consumer Confidence figures are expected. Meanwhile, on Wall Street, equities are trying to climb further higher after finishing yesterday with new highs and an optimistic outlook for earnings season.
Despite Brexit and rate worries, the pound is fighting back.
The Pound has risen against the Dollar for the second straight session, if little, to lie on the verge of 1.38, its highest mark this week. This comes as traders of Sterling are likely to be concerned about the new Brexit uncertainties, as well as the Bank of England meeting later this week.
The EU’s effort to placate the UK in respect to their commercial border and Northern Ireland has sparked new debate. David Frost, the UK’s chief negotiator, was certain that the EU had not gone far enough in their offer and that there would be no compromise. Simultaneously, all eyes will be on the UK budget, which will be revealed tomorrow ahead of the Bank of England’s monetary policy meeting next week, when interest rates are likely to increase.
The dollar is holding its ground ahead of consumer confidence data.
The Dollar was continued trading well today, with the US Dollar Index staying around the 94-point level, thanks to talks between top US officials and Chinese authorities. Treasury Secretary Janet Yellen talked with Chinese Vice Premier Liu He via video chat today about a variety of economic challenges, with both sides raising worries, but with increasing interaction tipping opinion to the positive side.
Consumer confidence statistics and September new home sales data are also expected later today, and both might have an influence on the market as inflation worries loom.
Wall Street is off to a good start this week.
The stock market on Wall Street has proceeded in the same direction as it did last week. The Dow Jones Industrial Average and the S&P 500 both set new highs yesterday, and pre-market activity suggests that they will continue to do so once the market opens.
The NASDAQ, which is heavily weighted in technology, has also had a strong start to the week, and is just around 1% off its all-time high. This might happen today, as a number of technology heavyweights are likely to publish higher-than-expected results. Microsoft and Apple will release earnings later on Tuesday, with Facebook up more than 2% in early trade.
The “best time to trade gbp/jpy gmt” is a question that has been asked for quite some time. The answer is not as simple as it seems, but the GBP has found strength against the JPY in recent days.